The cryptocurrency market experienced a significant flush of leveraged positions in the past 24 hours, with total liquidations reaching $340 million. In the total, shorts bore the brunt of the pain at $285.84 million compared to just $54.61 million in long liquidations.
This imbalance points to a strong upward price momentum catching over-leveraged bears off guard. Ethereum (ETH) emerged as the top liquidated asset, surpassing Bitcoin (BTC) and underscoring its heightened volatility and trader interest during the move.
Ethereum Dominates Liquidation Charts Amid Sharp Price Surge
Ethereum stole the spotlight in the liquidation rankings, recording approximately $123.7 million in total liquidations over 24 hours, edging out Bitcoin’s roughly $108.5 million, according to CoinGlass data.
Of ETH’s figure, short positions accounted for a staggering $112.18 million, while longs contributed about $11.55 million. This dominance highlights how aggressively traders had bet against ETH, only to face a rapid price climb of nearly 6% to around $1,880.
The largest single liquidation order of the period—a massive $6.37 million ETHUSDT position on Binance—further emphasized Ethereum’s central role in the squeeze. ETH’s outperformance relative to BTC (which rose 3.60% to ~$64,675) triggered cascading liquidations, particularly on major exchanges like Binance, OKX, and Bybit. High open interest combined with ETH’s recent breakout momentum amplified the effect, turning what might have been a moderate rally into a punishing event for short sellers.
At this point, Ethereum’s liquidation leadership reflects its status as a high-beta asset in the current cycle. With futures funding rates likely elevated prior to the move, over-leveraged participants on both perpetual and delivery contracts faced margin calls as price action accelerated.
This short-heavy liquidation profile often signals capitulation and can pave the way for continued upside if buying pressure sustains.
At the time of publishing, ETH was trading at $1,890, up 5.86% in the past 24 hours.
Bullish Market Sentiment Prevails as Short Squeezes Fuel Recovery
The broader market sentiment appears decisively bullish following the liquidation event. Major assets posted solid gains, with ZEC surging over 15% and contributing its own $13.28 million in mostly short liquidations. Solana (SOL) added to the positive mood with a 3.67% rise and $6 million liquidated, while newer tokens such as HYPE also saw notable short-side pain.
Overall 24-hour trading volume climbed to $181.45 billion (+12.56%), and total open interest across futures stood at $112.16 billion (+2.84%), indicating sustained capital inflow rather than exhaustion.
The dominance of short liquidations across exchanges, Hyperliquid showed nearly 98% short liquidations in recent hours, suggests many traders were positioned for a correction that failed to materialize. This creates a classic short-squeeze environment where forced covering fuels further buying.
Sentiment indicators point to growing optimism. Ethereum’s outperformance and leadership in liquidations reinforce narratives around its ecosystem upgrades and fresh capital flows. Bitcoin continues acting as the market anchor, but ETH’s relative strength signals risk-on appetite returning among traders. However, with over $340 million wiped out in a single day, volatility remains elevated, and participants are advised to monitor funding rates and liquidation heatmaps closely.
Looking ahead, if Ethereum holds above key support levels near $1,850–$1,870, it could target higher resistances with reduced short overhang. The market’s ability to absorb this liquidation volume without deeper retracement bodes well for near-term sentiment. Yet, as history shows, such flush events often mark local exhaustion points—traders should remain cautious of potential pullbacks once the squeeze momentum fades.
Also read: Hyperliquid Meets SEC Crypto Task Force Over U.S. Regulations
